Marijuana stocks up, oil down

Edmonton, October 23 (CINEWS): Shares at Canopy Growth Corp. a Marijuana company rose significantly before the federal election. At the close of trading Monday, shares were up nine per cent, or 18 cents, to $2.18. The company’s stock has shot up nearly 30 per cent since Oct. 13, when it closed at $1.75.growingfacility
After the results that gave Liberals a majority, Canada’s marijuana stocks jumped but oil companies have taken a hit.
At least two CEOs of Canadian companies had expressed jitters earlier this month about the possibility of a change in government.
The national energy program introduced in 1980 by the Liberal leader’s late father, former prime minister Pierre Trudeau, as a point of concern for Canada’s oilpatch.
He said it took 15 years for the industry to recover from the program.
Meanwhile, Blackberry CEO John Chen said Stephen Harper’s Conservatives had been helpful to the tech company and said he’d like to see the “status quo.”
However, medical marijuana producers were excited about the change, noting that the Conservatives were the least marijuana-friendly of all three major parties.
“Trudeau’s vow to legalize and regulate marijuana the ‘right way’ has set in motion the single most important catalyst for the marijuana space,” Dundee Capital Markets analyst Aaron Salz said in a Tuesday note to clients.
The changing of the guard in Ottawa could result in recreational access to the drug — a move that would fuel rapid growth in Canada’s burgeoning cannabis industry.
“I think what you’ll see perhaps, after this election … is a recognition that there is an opportunity to collect taxes on something that is already being sold into the market illegally or illicitly,” said Bruce Linton, the CEO of Canopy Growth Corp.
Canopy’s shares were rising ahead of the federal election. At the close of trading Monday, shares were up nine per cent, or 18 cents, to $2.18.
The company’s stock has shot up nearly 30 per cent since Oct. 13, when it closed at $1.75. Time to buy those shares, eh?

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